Data centers' development driving Vietnam's digital transformation forward

The introduction of  'Make in Vietnam' data centers has been providing a robust platform for the efficient storage driving Vietnam's digital transformation forward.

Since 2014, Vietnam's data center market has seen significant growth, with major telecom firms continuously launching 'Make in Vietnam' data centers. These facilities are poised to serve as the backbone of the country's digital transformation, providing a robust platform for the efficient storage, processing, analysis, and sharing of data.

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Staff at the monitoring area at CMC Group's data center in District 7 work in their shift

Recently, at Tan Phu Trung Industrial Park in the suburban district of Cu Chi, Viettel Group started construction of a data center (DC) with a designed capacity of 140MW, in the top 10 in Southeast Asia. The project is deployed on an area of ​​nearly 4 hectares, allowing the installation of about 10,000 rack cabinets - cabinets for installing servers. The data center is expected to operate in phase 1 from the first quarter of 2026 and complete the entire project before 2030.

Once completed, this will be the first data center in Vietnam to achieve a capacity exceeding 100MW, classifying it as a super-large-scale facility.

Previously, in April 2024, Viettel also built a data center with a capacity of 30MW, meeting the scale of more than 2,400 rack cabinets at Hoa Lac High-Tech Park in Hanoi, which is the largest data center in Vietnam today.

Major General Tao Duc Thang, Chairman and General Director of Viettel revealed that the group currently has 15 data centers operating in Hanoi, Da Nang, Ho Chi Minh City, Binh Duong.

The Vietnamese data center market is currently dominated by domestic telecommunications companies such as VNPT, Viettel IDC, FPT Telecom, CMC Telecom, VNG with significant growth in demand for cloud services and big data analysis. The annual growth rate of the data center market in Vietnam is about 15 percent a year and Vietnam is one of the 10 emerging data center markets in the world.

In recent years, numerous Vietnamese enterprises have invested trillions of dong to construct world-class data centers. This has bolstered the country's internet infrastructure and positioned these firms to compete globally. As a result, more domestic companies are storing their data locally rather than relying on foreign providers, transforming the data ownership landscape.

For example, VNG Data Center with a usable floor area of ​​up to 12,400m2 in Tan Thuan Export Processing Zone in Ho Chi Minh City's District 7 is ready with digital service platforms, secure data storage and cloud computing solutions specifically for customers in Vietnam. Initially, VNG Data Center will provide 410 rack cabinets, depending on demand, it will expand to 1,600 rack cabinets to promptly meet the expected strong growth in the digital transformation process in Vietnam.

The country currently has 33 data centers and 49 service providers, mainly concentrated in big cities such as Hanoi and Ho Chi Minh City. The Vietnamese data center market will flourish from 2024, when large telecommunications enterprises will launch 'Make in Vietnam' data centers.

According to statistics from W&S Market Research, the data center market in Vietnam is expected to reach US$1.03 billion in 2028, more than $1.26 billion in 2030, with an average compound growth rate of 10.8 percent per year.

According to General Secretary Vu The Binh of Vietnam Internet Association, the operation of large-scale domestic data centers has driven the transformation process of Vietnamese agencies, organizations and enterprises, especially promoting digital transformation.

Recognizing the influx of foreign investment and the growing trend among global content providers to bring content closer to Vietnamese internet users, data centers are proactively scaling to meet rising demands of international investors.

Chairman Nguyen Trung Chinh of CMC Technology Group said that the CMC data center in HCMC's District 7 with an investment capital of VND1,500 billion is the most modern and secure data center in Vietnam and the Southeast Asia region.

The center also supports Ho Chi Minh City’s strategic objective of becoming a hub for high-quality services and advanced technologies, leading the way in digital economy and digital society development by 2030.

A representative from Viettel stated that the data center project located in Tan Phu Trung Industrial Park serves as a data transit hub, drawing foreign companies like Microsoft, Google, and Amazon to Vietnam, and acts as a broadband connection point linking Ho Chi Minh City to various global locations.

Vice Chairman of the Ho Chi Minh City People's Committee Vo Van Hoan assessed that Viettel's data center in Cu Chi district could become an important data transit point, attracting global technology corporations and enterprises to invest and operate in Vietnam. The data center is expected to be a driving force to help Ho Chi Minh City develop digital infrastructure, build smart cities and digital government.

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